When To Treat Resident As Agent Of Non-Resident?

Tweet

Published on Thu, Apr 26,2012 | 10:42, Updated at Thu, Apr 26 at 10:57Source : Moneycontrol.com 

This PwC News Alert summarizes the recent decision in the case of Jet Airways (India) Pvt. Ltd., wherein the Income-tax Appellate Tribunal, Mumbai has held that taxability or non-taxability of income in the hands of a non-resident is not a relevant consideration for initiating proceedings under section 163 of the Income-tax Act, 1961 to determine whether a person can be treated as the agent of a non-resident.

The Tribunal also held that receipt of income alone is adequate for a resident to be treated as an agent of a non-resident, and that the liability of the non-resident to be taxed in India need not be established.

Read the accompanying attachment for more details..